“To amend the Securities Exchange Act of 1934 to prohibit certain acts by proxy advisory firms, and for other purposes.”
No CRS summary available for this bill.
This section prohibits proxy advisory firms (i.e., entities that provide paid recommendations to shareholders on specific proxy voting matters) from issuing proxy voting advice if they possess specified conflicts of interest, including (1) providing consulting services (e.g., advice on corporate governance or ESG policies) to the issuer or an affiliate, (2) altering recommendations based on the issuer's subscription to the firm's services, (3) simultaneously providing stewardship or engagement services to a shareholder proponent or related party on the same matter, or (4) membership in an organization supporting a similar shareholder proposal. The section further authorizes the SEC to impose administrative civil penalties on violating firms, governed by existing standards in SEC sections 21B and 21C.